|Public limited company|
|Traded as||LSE: RR.|
|Industry||Aerospace, Defence, Energy, Marine|
|Founded||1906 (as Rolls-Royce Limited)
1971 (nationalised as Rolls-Royce (1971) Limited)
1978 (renamed Rolls-Royce plc)
1987 (privatised as Rolls-Royce plc)
May 2003 (as holding company - Rolls-Royce Group plc)
|Founder||Charles Rolls and Henry Royce|
|Headquarters||Buckingham Gate, City of Westminster, London, United Kingdom|
|Ian Davis (Chairman)
Warren East (CEO)
|Products||Civil & military aero engines
Marine propulsion systems
Power generation equipment
|Revenue||£13.725 billion (2015)|
|£1.499 billion (2015)|
|£0.084 billion (2015)|
Number of employees
Rolls-Royce Holdings plc is a British multinational public holding company that, through its various subsidiaries, designs, manufactures and distributes power systems for aviation and other industries. Rolls-Royce Holdings is headquartered in City of Westminster, London. It is the world’s second-largest maker of aircraft engines, and also has major businesses in the marine propulsion and energy sectors. Rolls-Royce was the world's 16th-largest defence contractor in 2011 and 2012 when measured by defence revenues. It had an announced order book of £71.6 billion as of January 2014.
Rolls-Royce is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index. As of June 2013, it had a market capitalisation of £22.22 billion, the 24th-largest of any company with a primary listing on the London Stock Exchange.
- 1 History
- 2 Governance
- 3 Products
- 3.1 Aerospace
- 3.2 Marine
- 3.3 Energy – oil & gas
- 3.4 Energy – power generation
- 4 See also
- 5 References
- 6 External links
1906 to 1971
Rolls-Royce Limited was founded in 1906 by Henry Royce and Charles Rolls at the Midland Hotel, Manchester, as a manufacturer of luxury cars, before diversifying into aircraft engine manufacturing. The production of road vehicles remained a major activity of the company until the car business was split off in 1973 as Rolls-Royce Motors.
Rolls-Royce produced its first aircraft engine, the Eagle, in 1914. Around half the aircraft engines used by the Allies in World War I were made by Rolls-Royce. By the late 1920s, aero engines made up most of Rolls-Royce's business. The last design in which Henry Royce was involved was the Merlin aero engine, which came out in 1935; Royce had died in 1933. This was a development subsequent to the R engine, which had powered a record-breaking Supermarine S.6B seaplane to almost 400 mph in the 1931 Schneider Trophy. The legendary Rolls-Royce Merlin is revered as a British icon. The Merlin powered many World War II aircraft: the British Hawker Hurricane, Supermarine Spitfire, De Havilland Mosquito (twin-engined), Avro Lancaster (4-engine); it also transformed the American P-51 Mustang into one of the best fighters of its time, its Merlin engine built by Packard under licence. The early Merlins – Rolls-Royce piston engines were named after birds of prey – were used by the British Royal Air Force in the Hawker Hurricane and Supermarine Spitfire that won the Battle of Britain. The Merlin engine is often considered to be one of the main factors in winning the war for the Allies. Over 160,000 Merlin engines were produced.
In the post-World War II period, Rolls-Royce made significant advances in gas turbine engine design and manufacture. The Dart and Tyne turboprop engines were particularly important, enabling airlines to cut journey times within several continents, whilst jet airliners were introduced on longer services. The Dart engine was used in the Argosy, Avro 748 (and its military variant the Andover), Friendship, Herald and Viscount aircraft, whilst the more powerful Tyne powered the Atlantic, Transall, G222, Belfast and the Vanguard. Many of these turboprops are still in service.
Rolls-Royce turbine engines had traditionally borne numeric designations during development, and then were assigned the name of a British river on delivery. The use of river names was introduced with the earliest Rolls jet engines to reflect their nature: a steady flow of power rather than the pulses of a piston engine. RB stands for "Rolls-Royce Barnoldswick", the latter a major ex-Rover plant north of Burnley. This facility was bought by Rolls-Royce when it traded production of tank engines (the Merlin-based Rolls-Royce Meteor) for production of the first Whittle turbine engines.
Amongst the jet engines of this period was the RB163 Spey, which powers the Trident, BAC 1-11, Grumman Gulfstream II & III and Fokker F28. Military versions of the Spey powered the Buccaneer S2 for the RAF, the Phantom F4K and F4M, and the Nimrod. The Spey was licence built by Allison Engine Company as the TF41 for the A-7 Corsair II. Other types of military engines produced in the second half of the 20th Century include the Avon and Viper; these engines powered many of the British Aircraft of this period.
Also of this period was the Conway, a low (by today's standards) bypass ratio turbofan which was used on some Boeing 707s and Douglas DC-8s, and all Vickers VC10s, as well as on the MkII variant of the Handley Page Victor bomber for the RAF.
During the late 1950s and '60s, there was a significant rationalisation of the British aero-engine manufacturers, culminating in the merger of Rolls-Royce and Bristol Siddeley in 1966. Bristol Siddeley, which had itself resulted from the merger of Armstrong Siddeley and Bristol in 1959, and with its principal factory at Filton, near Bristol, had a strong base in military engines, including the Olympus, which was chosen for Concorde.
Nationalisation and separation
Having been selected as the sole engine supplier for the Lockheed L-1011 (TriStar), Rolls-Royce committed heavily to the RB211 engine, but its development was hampered by considerable technical problems, and on 4 February 1971 Rolls-Royce went into administrative receivership. To save the company, Edward Heath's government nationalised it as Rolls-Royce (1971) Limited. The automotive division was separated from the aircraft engine division in 1973, as Rolls-Royce Motors and sold to Vickers. The aero company renamed itself as Rolls-Royce plc from 1978. A side-effect of this affair was a change in accounting regulations to forbid the capitalisation of expenditure on research. This practice had resulted in Rolls-Royce massively overstating its assets, thus disguising its financial difficulties until it was too late to seek effective help.
Privatisation and expansion
Rolls-Royce plc was privatised in 1987 under the government of Margaret Thatcher. The 1980s saw the introduction of a policy to offer an engine fitment on a much wider range of civil aircraft types, with the company's engines now powering 17 different airliners (and their variants) compared to General Electric's 14 and Pratt & Whitney's 10.
In 1988, Rolls-Royce acquired Northern Engineering Industries (NEI), a group of heavy engineering companies mainly associated with electrical generation and power management, based in the North East of England. The group included Clarke Chapman (cranes), Reyrolle (now part of Siemens) and Parsons (now part of Siemens steam turbines). The company was renamed Rolls-Royce Industrial Power Group. It was sold off piecemeal over the next decade as the company re-focused on its core aero-engine operations following the recession of the early 1990s.
In 1990, BMW and Rolls-Royce established the BMW Rolls-Royce joint venture to produce the BR700 range of engines for regional and corporate jets, including the BR725 powering the Gulfstream G650, which received EASA Type Certification in June 2009.
On 21 November 1994, Rolls-Royce announced its intention to acquire the Allison Engine Company, an American manufacturer of gas turbines and components for aviation, industrial and marine engines; the two companies had a technical association dating back to the Second World War. Rolls-Royce had previously tried to buy the company when General Motors sold it in 1993, but GM opted for a management buyout instead for $370 million. Owing to Allison's involvement in classified and export restricted technology, the 1994 acquisition was subject to investigation to determine the national security implications. On 27 March 1995, the US Department of Defense announced that the "deal between Allison Engine Co. and Rolls-Royce does not endanger national security." Rolls-Royce was, however, obliged to set up a proxy board to manage Allison and had also to set up a separate company, Allison Advanced Development Company, Inc., to manage classified programmes "that involve leading-edge technologies" such as the Joint Strike Fighter Program. In 2000, this restriction was replaced by a more flexible Special Security Arrangement. In 2001, Rolls-Royce and its LiftSystem was among the group that won the JSF contract for the F-35.
The Allison acquisition, at $525 million (equivalent to £328 million), brought four new engine types into the Rolls-Royce civil engine portfolio on seven platforms and several light aircraft applications. Allison is now known as Rolls-Royce Corporation, part of Rolls-Royce North America.
In 1999 Rolls-Royce acquired Vickers plc for its marine businesses. Rolls-Royce sold Vickers Defence Systems (the other major Vickers area of business) to Alvis plc in 2002, which then became Alvis Vickers.
Rolls-Royce has established a leading position in the corporate and regional airline sector through the development of the Tay engine, the Allison acquisition and the consolidation of the BMW Rolls-Royce joint venture. In 1999, BMW Rolls-Royce was renamed Rolls-Royce Deutschland and became a 100% owned subsidiary of Rolls-Royce plc.
Optimized Systems and Solutions (formerly known as Data Systems & Solutions) was founded in 1999 as a joint venture between Rolls-Royce plc and Science Applications International Corporation (SAIC). In early 2006, SAIC exited the joint venture agreement, making Rolls-Royce plc the sole owner.
On 6 April 2004, Boeing announced that it had selected both Rolls-Royce and General Electric to power its new 787. Rolls-Royce submitted the Trent 1000, a further development of that series. GE's offering is the GENX, a development of the GE90.
In July 2006, Rolls-Royce reached an agreement to supply a new version of the Trent for the revised Airbus A350 (XWB) jetliner. This engine, the Trent XWB is an engine developed from the Trent 1000, a variant of which was offered for the original A350 proposal. As of July 2015, over 1,500 engines of this type have been supplied to 40 customers.
In October 2006, Rolls-Royce suspended production of its Trent 900 engine because of delays by Airbus on the delivery of the A380 superjumbo. Rolls-Royce announced in October 2007 that production of the Trent 900 had been restarted after a twelve-month suspension caused by delays to the A380.
On the military side, Rolls-Royce, in co-operation with other European manufacturers, has been a major contractor for the RB199 which in several variants powers the Panavia Tornado, and also for the EJ200 engine for the Eurofighter Typhoon. Two modified RB199 engines also powered the EAP demonstrator which evolved into the Typhoon. Rolls-Royce has matured the Rolls-Royce LiftSystem invented by Lockheed Martin for the Joint Strike Fighter (JSF) F-35 Lightning II to production level, planned to be produced in significant numbers.
On 18 June 2007, Rolls-Royce announced at the 2007 Paris Air Show that it had signed its biggest ever contract with Qatar Airways for the Trent XWB to power 80 A350 XWBs on order from Airbus worth $5.6 billion at list prices. On 11 November 2007, another large contract was announced at the Dubai Airshow from Emirates Airline for Trent XWBs to power 50 A350-900 and 20 A350-1000 aircraft with 50 option rights. Due to be delivered from 2014, the order is potentially worth up to 8.4 billion US Dollars at list prices, including options.
On 20 November 2007, Rolls-Royce announced plans to build its first Asian aero engine facility in the Seletar Aerospace Park, Singapore. The $562m (£355m) plant complements its existing facility at Derby by concentrating on the assembly and testing of large civil engines, including Trent 1000 and Trent XWB. Productivity will be higher than at Derby, as the plant is fully integrated, as opposed to manufacturing occurring across five sites in the UK: a Trent 900 will take only 14 days to manufacture, as opposed to 20 in the UK. Originally expected to provide employment for 330 people, by the start of production in 2012, 1,600 employees were based in Singapore.
During the 2011 Avalon Airshow, Rolls-Royce faced questions concerning incidents with its Trent 900 Turbofan used to power the Airbus A380 aircraft. One of the engines suffered a partial power loss during a Qantas flight in February 2011. This followed an incident in November 2010 in which an engine disintegrated in flight causing Qantas Flight 32 to make an emergency landing in Singapore. The aircraft was extensively damaged and the airline grounded its fleet of A380s. The problem was traced to a fatigue crack in an oil pipe requiring the replacement of some engines and modifications to the design. Trent-powered A380s operated by Lufthansa and Singapore Airlines were also affected. Qantas gradually returned its A380s to service over several months. In June 2011 the airline announced it had agreed to compensation of US$100m from Rolls-Royce.
In March 2011, Rolls-Royce and Daimler AG launched a $4.2 billion public tender offer for 100 per cent of the share capital of Tognum AG, the owner of MTU Friedrichshafen - a leading high-speed industrial and marine diesel engine manufacturer, which was completed using a 50:50 joint venture company. Rolls-Royce and Daimler AG intend that the joint venture company, which also now incorporates Rolls-Royce's existing Bergen engine business, is listed on the Frankfurt Stock Exchange.
Following the acquisition of Goodrich by United Technologies Corporation in July 2012, Rolls-Royce announced it would purchase Goodrich's 50% share of Aero Engine Controls to become wholly owned by Rolls-Royce Plc and a part of the Rolls-Royce Group.
In 2013 media reported allegations from two American ex-employees that thousands of the company's jet motors from the US division were manufactured with defects, including the use of used parts in jet motors sold as new.
In 2014, facing allegations of bribery in the aftermath of the Sudhir Choudhrie affair, RR offered to return the money to the Indian government. The SFO is also investigating allegations of bribery in Indonesia and China.
In June 2014 Rolls-Royce announced the merger of two wholly owned subsidiaries, Aero Engine Controls (AEC) and Optimized Systems and Solutions (OSyS), to form a new business, Rolls-Royce Controls and Data Services which would continue to operate as part of the Rolls-Royce Group.
In November 2014, the engineering group of the company announced that 2,600 jobs are going to be cut over the following 18 months.
In February 2015, Rolls Royce was accused of bribing an employee of Brazil’s state-controlled oil company to win a $100 million contract to provide gas turbines for oil platforms.
- Ian Davis, Chairman
- Warren East, Chief Executive
- Lewis Booth, Senior Independent director
- Helen Alexander, Non-executive director
- Ruth Cairnie, Non-executive director
- Frank Chapman, Non-executive director
- Lee Hsien Yang, Non-executive director
- John McAdam, Non-executive director
- John Neill, Non-executive director
- Jasmin Staiblin, Non-executive director
- James Guyette, President & CEO of North America
- David Smith, Chief financial officer
- Colin P. Smith, Director - Engineering and Technology
- Pamela Coles, Company Secretary
Rolls-Royce's aerospace business makes commercial and military gas turbine engines for military, civil, and corporate aircraft customers worldwide. In the United States, the company makes engines for regional and corporate jets, helicopters, and turboprop aircraft. Rolls-Royce also constructs and installs power generation systems. Its core gas turbine technology has created one of the broadest product ranges of aero-engines in the world, with 50,000 engines in service with 500 airlines, 2,400 corporate and utility operators and more than 100 armed forces, powering both fixed- and rotary-wing aircraft. Rolls-Royce Marine Power Operations Ltd (a subsidiary company) manufactures and tests nuclear reactors for Royal Naval submarines.
- Rolls-Royce AE 3007
- Rolls-Royce BR700
- Rolls-Royce Conway
- Rolls-Royce RB211
- Rolls-Royce RB282
- Rolls-Royce/Turbomeca Adour
- Rolls-Royce Pegasus
- Turbo-Union RB199
- Rolls-Royce Spey
- Rolls-Royce Tay (turbofan)
- Rolls-Royce Trent
- Eurojet EJ200
- General Electric/Rolls-Royce F136
- International Aero Engines V2500
- Rolls-Royce AE 2100
- Rolls-Royce Gem
- Rolls-Royce Model 250
- Rolls-Royce RR300
- Rolls-Royce RR500
- Rolls-Royce T406/AE 1107C-Liberty
- Rolls-Royce T56
- Europrop TP400-D6 (as part of Europrop International)
- MTR390 (with MTU and Turbomeca)
- Rolls-Royce/Turbomeca RTM322
- LHTEC T800 (with Honeywell)
- Spey SM1A and improved SM1C
- Olympus TM1, TM1A and improved TM3B
- Tyne RM1A and improved RM1C
- Kamewa and Bird-Johnson Waterjets
- Kamewa Tunnel thruster
- MerMaid pod propulsion
- Ulstein Aquamaster Azimuth thruster
- Michell Bearings
- Brown Brothers Legacy Stabilizers
- Brown Brothers Neptune or VM Stabilizers
- Brown Brothers Aquarius Stabilizers
Energy – oil & gas
Now a part of Siemens.
- Barrel centrifugal compressor
- Pipeline centrifugal compressor
Energy – power generation
The Energy division of Rolls-Royce was acquired by Siemens in 2014 and Rolls-Royce no longer caters to the Oil & Gas or Power Generation Industry.
Rolls Royce is consistently working on the industrial gas turbines. Montreal, Canada is where research work is done on gas generators. Mount Vernon will support complete packaging of the Gas turbine. Shipping of the complete skid is done from Mt Vernon.
Distributed generation systems
- Field Electrical Power Source
- APU 2000 vehicle power unit
- Marine generator sets
- Solid Oxide Fuel Cell
- Rolls-Royce plc history
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- Rolls-Royce board, Rolls-Royce Holdings plc
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